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Cross-margining: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{a|pb|}}The process, common in prime brokerage, of calculating required initial margin by reference to net exposure across ''all'' products, rather than in silos where o...") |
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{{ | {{ap|pb|}}The process, common in prime brokerage, of calculating required initial margin by reference to net [[exposure]] across ''all'' products, rather than in silos where outstanding transactions under each [[master agreement]] are margined separately. | ||
Cross-margining is often seen under a [[prime brokerage agreement]], which acts as a [[security | Cross-margining is often seen under a [[prime brokerage agreement]], which acts as a [[security]] deed over all clients assets that the [[prime broker]] holds in custody, and also often functions as a [[master netting agreement]] sitting across and cross-netting exposures under distinct [[master agreement]]s that may exist between the parties alongside the PBA (for example, an {{isda}} or a [[futures]] clearing agreement). | ||
===Example=== | ===Example=== | ||
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| Swap VM || - || {{red|(20,000,000)}} || 100% || {{red|(20,000,000)}} | | Swap VM || - || {{red|(20,000,000)}} || 100% || {{red|(20,000,000)}} | ||
|- | |- | ||
|'''Total''' || '''200,000,000''' || | |'''Total''' || '''200,000,000''' || {{red|(110,000,000)}} || - || '''60,000,000''' | ||
|} | |} | ||
{{sa}} | |||
*[[Archegos]] | |||
{{ | |||